After enduring a nearly decade-long sewer connection ban, the Town of Birdseye is set to embark on a major infrastructure upgrade following the approval of a substantial state grant. The funding will fund critical improvements to the town’s outdated wastewater system and enable future growth.
Town leaders had previously worked with the Indiana 15 Regional Planning Commission to assemble a comprehensive funding package. It includes a $750,000 grant from the Indiana Office of Community and Rural Affairs (OCRA), a $350,000 commitment from Dubois County, and a $200,000 loan through the Rural Water Loan Fund. This collaborative approach was necessary to address the most urgent system deficiencies and reduce a previously projected $2.7 million expense to about $1.265 million.
The OCRA grant is part of a broader statewide initiative announced August 20 by Lt. Governor Micah Beckwith and OCRA Executive Director Fred Glynn. As one of 15 rural communities selected, Birdseye will receive focused funding aimed at rehabilitating manholes and mains, adding an emergency bypass connection at a lift station, and dredging wastewater lagoons to bring the system into compliance and address pressing health and safety risks.
The sewer ban, originating around 2015 under an IDEM early warning designation, has impeded new connections and hindered residential development. The system’s vulnerability to stormwater infiltration has caused serious capacity overloads—recording inflow of over 400,000 gallons following moderate rainfall, far exceeding daily limits. Over the years, the town has modestly increased water and sewer rates—sewer from $31.02 in 2019 to $45.32 in 2024, and water from $51.16 to $53.56—to fund incremental improvements.
County officials responded favorably to the town’s request, noting Birdseye’s proactive financial contributions, and unanimously approved the $350,000 match. If the full grant package is approved as expected, bids are scheduled to be solicited within six months, with construction anticipated to commence in spring 2026 and conclude by early summer 2027.
The OCRA announcement emphasized the grant’s multi-community impact. The overall allocation of over $10.8 million across 15 rural Indiana communities will support projects to expand community facilities, improve water and wastewater infrastructure, and eliminate blight—economic drivers aimed at enhancing small-town viability.
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